The present invention discloses a system and associated method for automatically optimizing caching period of location data for network based location services. Conventional network based location service methods caches the location data to overcome inaccuracy of the location data caused by latency for processing location requests and to support more transactions per a network location server. Conventional network based location service methods statically determine caching periods for various types of services without taking dynamic changes of circumstances into account, which degrades accuracy of the serviced location data.